Questions to Ask a Financial Advisor in Canada (2026 List)
Before hiring a financial advisor in Canada, ask how much you will pay in total, in dollars, and how they are paid. Also ask what they are registered to sell, what conflicts they have, and what the plan covers. The OSC's investor site lists eight core questions; the answers below show which replies should worry you.
- The single most useful question: "What will I pay in total this year, in dollars, including fund costs?" From 2027, your annual report must show that number anyway, according to CIRO.
- Ask how they are paid: salary, commission, a fee on assets, a flat fee, or a mix. The OSC's investor site says fee-based accounts typically cost 1% to 2% a year.
- Check the answer to "Are you registered?" yourself on aretheyregistered.ca before the second meeting.
- Conflicts must be addressed in your best interest and disclosed, under the reforms that began June 30, 2021. Ask what theirs are.
- Vague answers on cost, pressure to move money quickly, and promised returns are reasons to walk away.
This guide is part of Hands-Off Investing, in the Investing category. Use it with how to check an advisor is registered and how to read your total cost report. If you are still deciding whether you need an advisor at all, start with robo-advisor versus financial advisor.
Which questions matter most?
The OSC's investor site groups its list into eight areas: qualifications, registration, experience, products and services, clients, investment philosophy, pay, and how you will work together. Here they are as questions you can read out, with the reason each matters.
Ask for the advisory or account fee plus the fund costs (MER plus trading costs) on your actual balance.
Salary, commission, a percentage of assets, a flat fee, or trailing commissions from fund companies.
This tells you what they are allowed to sell or advise on.
A narrow shelf is not wrong, but you should know about it.
Retirement income, tax, pensions, insurance and estate, or only the portfolio?
Buy and hold, or frequent trading? Index funds, active funds, or individual stocks?
Someone who mostly serves retirees may not be the best fit for a 30-year-old business owner.
Annual review, quarterly calls, or only when you ask? Will you deal with them or with an assistant?
Which answers should worry you?
A good advisor answers these clearly and puts the cost answer in writing. The table shows what a clear answer sounds like and what should make you pause.
| Question | A clear answer | An answer that should worry you |
|---|---|---|
| Total cost in dollars? | "About $4,100 a year on $250,000: $3,125 advisory fee and about $1,000 in fund costs. I'll email it." | "It's built into the funds, you won't notice it." |
| How are you paid? | "A 1.25% fee you see on your statement. I don't receive trailing commissions." | "The fund company pays me, so it's free to you." |
| Registration? | "Dealing representative with [firm], registered in Ontario and BC. Here's how to look me up." | "I'm licensed," with no category or firm, or a firm name that does not match the registration search. |
| Product shelf? | "ETFs and funds from several companies. Our own funds are on the list, and here's how I avoid favouring them." | "Our funds are the best, so that's what we use." |
| Written plan? | "Yes, covering retirement income, tax and insurance, updated every year." | "We'll talk about planning once your money is moved over." |
| Expected returns? | "I can't promise returns. Here's how a mix like this has behaved in bad years." | Any specific return promise, or pressure to decide today. |
| Leaving later? | "Transfer-out fee of $X. No deferred sales charges on what I recommend." | "You won't want to leave," with no fee answer. |
The dollar figures in the "clear answer" column are illustrative. The point is the form of the answer: specific, in dollars, and in writing.
How do advisors get paid, and what does it cost?
Pay structure shapes advice. Commission-based pay can reward selling, and a percentage-of-assets fee can reward gathering assets. Flat fees remove some conflicts but can be expensive on small accounts. None is automatically better: what matters is that you know which one you are in.
| Pay model | Typical cost | Conflict to ask about |
|---|---|---|
| Trailing commission (inside a mutual fund's MER) | Typically 0.25% to 1.5% a year | Funds paying higher trailers may be favoured |
| Front-end load | Up to 5% of the amount invested | A one-time sale incentive |
| Fee-based (percentage of assets) | Typically negotiated between 1% and 2% | Advice to keep money in the account rather than pay down debt or buy a pension |
| Flat or hourly fee (fee-only) | Set by the planner | Fewer product conflicts; check what is and is not included |
| Deferred sales charge | Banned for new sales as of June 1, 2022 | Old DSC schedules can still apply when you sell |
Annual fee on a $300,000 account at different rates (calculated)
Simple percentage of $300,000, before fund costs and sales tax. The 1% to 2% range is from the OSC's investor site. Ask for your own number in dollars.
How do you ask about conflicts?
Under the Client Focused Reforms, the BC Securities Commission explains that registered firms and advisors must address material conflicts in your best interest, disclose them in plain language, and avoid conflicts they cannot address. The conflict rules began June 30, 2021, and the rest of the package came into force December 31, 2021. The BCSC suggests asking about conflicts at every meeting and getting answers in writing.
- "Do you or your firm earn more if I buy one product rather than another? Which ones?"
- "Do you recommend your firm's own funds? How do you decide when a cheaper outside fund is better?"
- "Do you get any bonus, trip or sales credit tied to what I buy or how much I move to you?"
Ask for the answers by email. Firms must disclose material conflicts to you in plain language, so a written answer should not be a problem.
How do you decide after the meeting?
Amara has $300,000 across an RRSP and TFSA and is meeting two advisors. Advisor A quotes 1.25% plus about 0.30% in ETF costs: $4,650 a year, with a written plan updated annually. Advisor B says the cost is "built into the funds" and will not put a number in writing. Amara checks Advisor A on the national registration search, finds a match, and asks one follow-up: "What would it cost to leave?" She signs with A and diarizes a review when her first total cost report arrives in 2027. Amara and the fees are illustrative.
What differs by province?
The registration and conflict rules are national, coordinated through the CSA. Titles and complaint timelines differ:
- Ontario: anyone using "Financial Planner" or "Financial Advisor" needs a credential from a body approved by FSRA. FSRA says the transition period ended March 28, 2026. Ask which credential they hold.
- Quebec: the financial planner title requires a diploma from the Institut de planification financière and an AMF certificate. You can look up authorized people in the AMF registers.
- Complaints: OBSI says investment firms have 90 days to respond to your written complaint, or 60 days for Quebec residents, before you can take it to OBSI.
- Elsewhere: this guide has not confirmed title-protection rules in force in other provinces. Rely on the registration search and the credential itself.
Checklist
- Total annual cost in dollars, in writing
- How they are paid, and by whom
- Registration category and firm checked on aretheyregistered.ca
- Conflicts explained in writing
- What the written plan covers
- Transfer-out cost and any deferred sales charges
- Compared with at least one other option
Frequently asked questions
What is the most important question to ask a financial advisor?
"What will I pay in total this year, in dollars, including fund costs?" It forces a specific answer and makes it easy to compare. From 2027, your annual report must show this figure anyway.
Is a fee-only advisor better than a commission-based one?
Not automatically. Fee-only planners avoid product commissions but can be expensive for small needs. Commission-based advisors can be good value if the total cost is reasonable. Compare total cost and services.
Should I ask an advisor about their returns?
You can ask how their recommended portfolios behaved in bad years, such as 2022. Be wary of anyone who promises returns or shows only good years.
Do I have to give an advisor all my financial information?
To give suitable advice, a registered advisor must collect know-your-client information about your situation, goals and risk tolerance. You can meet first and ask your questions before sharing account numbers.
How do I check if a financial advisor is legitimate?
Search their name and firm on the CSA's national registration search at aretheyregistered.ca. For investment dealer advisors, CIRO's AdvisorReport also shows their history. Our registration guide walks through it.
What if my advisor will not answer about fees?
Ask in writing. If the firm still will not answer, that is a reason to leave. If you think the rules were broken, complain to the firm first, then to OBSI or your securities regulator.
Can I negotiate an advisor's fee?
Often, yes, especially on larger accounts. The OSC's investor site describes fee-based rates as typically negotiated between 1% and 2%.
Sources
- GetSmarterAboutMoney (OSC): 8 questions to ask an advisor, last updated December 11, 2023, reviewed October 23, 2026
- GetSmarterAboutMoney (OSC): Mutual fund fees, reviewed October 23, 2026
- BCSC InvestRight: Client Focused Reforms and conflicts of interest, reviewed October 23, 2026
- CIRO: Total Cost Reporting for 2027, reviewed October 23, 2026
- OBSI: Frequently asked questions, reviewed October 23, 2026
- FSRA: Financial Planner title transition reminder, AMF: Financial planning and AMF registers, reviewed October 23, 2026
Related reading
- How to check a financial advisor is registered
- Total cost reporting in Canada
- Robo-advisor vs financial advisor
- Best robo-advisors in Canada
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